Bangalore: Stating that Equity, Fairness, Simplicity and Efficiency were the hallmarks of the new Direct Tax Code, Finance Minister, Shri Pranab Mukherjee said that the new code is not a modified old law but it is a futuristic new tax regime.

He stressed that the proposed tax code would be implemented only after it receives the sanction of the legislature which comprises of elected representatives. The newly adopted process of releasing the proposed legislation for public debate before it is introduced in the parliament marks a new era in functional democracy.

Emphasizing that the Direct Tax Code is still at discussion stage and will be finalized only after carefully considering all the suggestions received, he said that the tax policy teams have been visiting various locations in the country and listening to the public views. The practice of the policy executives reaching out to the stakeholders for assimilating their viewpoints before the bill is introduced in the house adds a new dimension to the new legislative practices.

Mr. R Seshasayee, Past President, CII & MD, Ashok Leyland speaking at the Inaugural Session said the objective of introducing the new tax code is to widen the tax base, concept of income, and the concept of taxpayers. It’s a modern, contemporary tax code compatible with the modern economy and aimed at integrating with the global best practices. He broadly invited the interactions based on the five areas – definition and scope of income, special business entities, international taxation, administrative procedures and others.

The minister said that revenue equation between the old tax regime and the proposed tax regime is zero-sum. He also mentioned that the introduction of MAT is an additional revenue generation method. The proposed legislation intends to be beneficial for everyone in the medium and long term. He invited everyone to view the proposed legislation in the totality of its impact over the next few decades in terms of not only the progressive incidence but also in terms of economic opportunities.

Mr. P.V. Bhide, Revenue Secretary, Ministry of Finance stated that, “The new code is a compact offer and the applicable rates have been substantially reduced from the old one.”

Mr. S.S.N Moorthy, Chairman, Central Board of Direct Taxes, Ministry of Finance said that, “The philosophy has been to make the IT Act simple and understandable, to eliminate discretion to a large extent and to make the tax procedure at par with global standards.”